Binance.US reaches consensus with SEC! Expected to exclude Binance token, with only U.S. executives managing user assets.
According to CoinDesk, Binance has reached an agreement with the U.S. Securities and Exchange Commission (SEC) to ensure that only specific executives of Binance.US have control over user funds, and no employees of Binance Holdings can access wallet private keys or the Amazon Web Services tools of Binance.US. The final signing of this agreement is pending the oversight of a federal judge.
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Prior reports indicated that a U.S. district judge believed that Binance.US and the SEC were not too far apart in their positions on safeguarding customer funds, and therefore referred the asset freeze issue to a local magistrate for further negotiation.
As part of its proposal, Binance suggested transferring the cryptocurrency assets of U.S. customers to new wallets with new private keys, which would be solely controlled by the local head of Binance.US in the United States.
On the other hand, in the compromise proposal submitted by the SEC, they requested Binance to repatriate customer assets to the United States and have them controlled by entities beyond the reach of Changpeng Zhao to handle redemption matters for customers.
This appears to be in close alignment with the outcome reported by CoinDesk.
Binance.US Lawsuit: SEC Agrees to Negotiate to Avoid Asset Freeze, Mediation Continues on Wednesday
In the coming weeks, Binance.US will also estimate costs related to business expenses as part of the prior negotiation between both parties, aiming to allow Binance.US to sustain operations and prevent harm to users.